Documents & Reports

Bureaucrats in business : the economics and politics of government ownership (English)

Abstract

This book is the fourth in a series of policy research reports that bring to a broad audience the results of World Bank research on important policy issues. It draws on extensive data and detailed case studies to show how divestiture and other reforms...
See More +This book is the fourth in a series of policy research reports that bring to a broad audience the results of World Bank research on important policy issues. It draws on extensive data and detailed case studies to show how divestiture and other reforms can improve economic performance, why politics often impede reform, and how reforming countries have overcome these obstacles. To demonstrate why some countries succeed in reform and some do not, the book compares policies for state-owned enterprises in twelve countries. It also documents the importance of three types of contracts for reforms: 1) performance contracts (between government and public managers); 2) management contracts (between the government and the private managers of a government firm); and 3) regulatory contracts (between a government and the owners of a privatized, regulated monopoly). It analyzes how performance contracts have not improved company performance, how management contracts have worked better and how regulatory contracts have usually worked well, provided that the government is able to design and implement effective regulations. Finally, the book presents detailed recommendations for the reform of state-owned enterprises.
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Citation

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World Bank. 1995. Bureaucrats in business : the economics and politics of government ownership (English). A World Bank policy research report. Washington DC ; World Bank. http://documents.worldbank.org/curated/en/197611468336015835/Bureaucrats-in-business-the-economics-and-politics-of-government-ownership